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United Kingdom Employment Appeal Tribunal |
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You are here: BAILII >> Databases >> United Kingdom Employment Appeal Tribunal >> Croft Vets Ltd & Ors v Butcher (Disability Discrimination : Disability related discrimination) [2013] UKEAT 0430_12_0210 (2 October 2013) URL: http://www.bailii.org/uk/cases/UKEAT/2013/0430_12_0210.html Cite as: [2013] UKEAT 0430_12_0210, [2013] UKEAT 430_12_210 |
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At the Tribunal | |
On 10 July 2013 | |
Before
THE HONOURABLE MR JUSTICE SUPPERSTONE
MS V BRANNEY
MR G LEWIS
(2) MS JUDITH JOYCE (3) MR MALCOLM NESS |
APPELLANT |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
For the Appellants | MR SEAMUS SWEENEY (of Counsel) Instructed by: Messrs Sintons Solicitors LLP The Cube Barrack Road Newcastle-upon-Tyne Northumberland NE4 6DB |
For the Respondent | MS KATHERINE EDDY (of Counsel) Bar Pro Bono Unit |
SUMMARY
DISABILITY DISCRIMINATION
Disability related discrimination
Reasonable adjustments
The Respondent was employed by the Appellants as a reception and finance manager. She suffered from work-related stress and severe depression. She resigned from her employment when the Appellants did not act on the recommendations made by the clinical psychiatrist to whom they referred her. The Employment Tribunal held her claims that the Appellants failed to make reasonable adjustments to be well-founded, that she was unfairly constructively dismissed and that her dismissal was an act of discrimination arising from disability. The EAT dismissed the Appellants' appeal on liability (save for the finding that the dismissal was an act of discrimination arising from disability as that was not one of the agreed issues before the ET) and the appeal on remedies against the award of compensation. The EAT, inter alia, found that there was no error by the ET in identifying the relevant PCP; and the ET correctly found that the Appellants had not made reasonable adjustments by failing to pay for the Respondent to have private psychiatric services and counselling. The issue was not the payment of private medical treatment in general, but, rather, payment for a specific form of support to enable the Respondent to return to work and cope with the difficulties she had been experiencing at work.
THE HONOURABLE MR JUSTICE SUPPERSTONE
Introduction
Factual background
"We are sorry that you are not well enough to attend work today especially as we had arranged to meet with you. As that will not now be possible, I am writing to summarise our discussions last Thursday.
As you are aware from last Thursday and previous meetings we think that you have not been coping with your job very well for some considerable time now. We detailed some of our concerns at this meeting and offered you two choices.
The first was to continue with your job according to your current job description, and with our support, to take steps to improve your performance and further develop your skills of delegation.
The second was to accept a narrowing of your job description to financial controller at a lower salary of £25,000. This was to ensure that the finances of the practice were kept under control at a very important time. With the removal of managerial duties relating to reception and personal assistant, we calculate that this would be half as much work for two-thirds of the salary. We thought that, with time and the expansion of the practice, it would be possible for the responsibility of this altered role to grow and to attract a higher salary, conditional on performance."
The letter concluded, "this offer remains open and we hope to discuss this with you further as soon as you are able. … We would like to take this opportunity to wish you a speedy recovery".
"Finally, prior to your illness, we were discussing in some detail a number of modifications to your duties in order to allow you to better cope with your role and to improve your performance. Indeed, the information advice that we will hopefully receive from Dr Parry in due course will likely be of benefit in these discussions. That said, please do not let these discussions be a cause for concern for the time being. We can easily pick up the discussions when you are fit and well enough to do so on your return to work. The important thing is that you follow the medical advice provided to you to date and I hope that this will ensure that you will be back with us soon."
"It is relevant that Mrs Butcher has a family history of depression in both her father and her brother. Based on my interview with her, I formed the impression that predominantly work-related stress had triggered a severe depressive episode with marked anxiety. Although there were other stresses around (her mother's health, house moves) I consider that these were of significantly less stress than the work issues. Treatment with anti-depressant medication in the form of Citalopram 40mg daily has led to some improvement, but there is a still a long way to go. I consider that, optimistically, Mrs Butcher will require a further three to four months off work, and possibly considerably longer. In order to optimise her treatment, I would recommend that the Practice gives sympathetic consideration to funding further sessions. These sessions should include ones with an experienced Clinical Psychologist, and I would suggest Jane McCarthy based at the Lansdowne Clinic in Newcastle, for work including cognitive behavioural therapy. Further details including costing, can be obtained from the Lansdowne Clinic… In addition I suggest that consideration is given to funding a further six psychiatric sessions at a cost not exceeding £750, in order to optimise Mrs Butcher's treatment with anti-depressant medication, and in order to provide an overview of her progress. I should point out, however, that even with this additional treatment, there is no guarantee that Mrs Butcher will improve to a degree where she is able to return to work, though obviously I am hopeful that this would be the outcome."
"Again its contents are of considerable importance. In particular he identified more specifically that his diagnosis was of severe depressive episodes with marked anxiety under F32.2 of the ICD10."
Miss Jobling responded to that letter on 22 October posing further questions. Dr Parry did not reply to that letter promptly, in fact he did not do so until 20 January 2011. There was an issue as to the extent to which the Appellants chased up Dr Parry for a response. However, events were overtaken by the Claimant's resignation letter of 23 November 2010.
"I am resigning my employment with Croft Vets with immediate effect. I am disappointed that after 14 years of committed employment with you I feel forced into making this decision.
I have not had any communication from yourselves since Dr Parry wrote to you.
In the past you have set great store by Dr Parry's opinion and yet in my case you have chosen to ignore his diagnosis. It appears you sent me to see him not to assist my recovery but to check I was indeed suffering from depression. You then chose to further question Dr Parry on his diagnosis of work-related stress and severe depression and once again chose to ignore his recommendations.
…
You have caused my stress and depression. My workload in itself had become intolerable notwithstanding all of the reception work I was needed to do. When I commenced the role of finance and reception manager the Croft Vets consisted of four branches, this now stands at nine branches and the hospital. You said yourselves that a mistake had been made not recruiting another receptionist for the hospital opening. There were many days when I was unable to do any of my job for helping out on reception. Losing three experienced receptionists in the middle of 2009 made my job even more impossible. I had found it impossible to keep up with my normal tasks during the construction of the hospital when I also had the financial responsibility for the hospital among other aspects of the build. The workload increased even more once we had moved into the hospital, taking on the role of support for the new computer system, the first of its kind in Britain, whilst attempting to resolve the ongoing problems with BT. …
You caused me to have this breakdown…
Aware that I was showing signs of depression and burnout you ignored your duty to care towards me. My GP's analysis confirmed I was suffering from depression and burnout. You questioned their diagnosis and required me to attend Dr Parry, your clinical psychiatrist. He confirmed that I am suffering from work-related depression and outlined a course of treatment he recommended to you. Rather than accepting Dr Parry's diagnosis and recommendations you questioned your responsibility as to the cause. Dr Parry has now confirmed his diagnosis, clearly stating the references he used for his conclusions and re-stating his recommendations to you regarding my treatment which you have chosen to ignore. I believe you have discriminated against me because of my disability."
"We have received your letter dated 23 November 2010 and are very sorry that you have taken the decision to resign. We note that you have made a number of allegations which in this letter we seek to address and hope that having considered what we have to say in this letter, you may reconsider your decision.
…
… For reasons that we set out below in more detail, however, the medical information given by Dr Parry was still inconclusive and made it difficult for us to act upon.
…
Once we received Dr Parry's report (which indicated that he had no understanding of a prognosis and indicated that he would have to see how you reacted to the course of medication) we did approach him to try to understand how long it ordinarily takes for the medication to have some impact. Again this was merely to understand the likely timelines and be able to plan accordingly. There was not any other motive as you suggest in your letter. Ultimately, there has not been any delay in accommodating his advice as we are not obliged to fund a private course of treatment and in any event, his conclusion was clearly that this may not be fruitful. Further, throughout this period, you have not been well enough to be able to work and as Dr Parry concluded in his report, he had to wait to see how you reacted to the medication before he could give any guidance as to the prognosis of your condition. As such, there was not a great deal that Croft could do for you at the time Dr Parry's report was received or indeed, at the current time, as we have not yet received a response to our last letter to Dr Parry and so this delay has been out of our hands."
"As I have previously said, it is not possible to say how long her symptoms are likely to last, because this depends on her response to treatment. I have also said that with appropriate treatment, she should certainly improve significantly from the depression, but whether or not she will make a complete recovery will remain to be seen. It is simply not possible to provide you with more specific information.
Obviously I have considerable experience in dealing with similar cases, based on over twenty years experience as a Consultant in General Adult Psychiatry. Based on my experience, I can say that it would take between three months and two years (average one year) undergoing treatment with an experienced Psychiatrist and an experienced Psychologist before she would be potentially fit to return to work. However, given that many of the factors that triggered the depression were work-related, and therefore beyond her immediate control, there must be a significant chance that she would not recover sufficiently to enable her to return to work. I would rate the chances of her being able to return to work as no greater than 50/50."
The statutory framework
"(i) The effect of an impairment is a long-term effect if
(a) it has lasted at least 12 months;
(b) the period for which it lasts is likely to be at least 12 months; …"
"(i) an impairment which would be likely to have a substantial adverse effect on the ability of the person concerned to carry out normal day to day activities, but for the fact that measures are being taken to treat or correct it, is to be treated as having that effect.
(ii) in sub-paragraph (i) measures includes, in particular, medical treatment…"
"Where—
(a) a provision, criterion or practice applied by or on behalf of an employer, or
(b) any physical feature of premises occupied by the employer, places the disabled person concerned at a substantial disadvantage in comparison with persons who are not disabled, it is the duty of the employer to take such steps as it is reasonable, in all the circumstances of the case, for him to have to take in order to prevent the provision, criterion or practice, or feature, having that effect."
"Nothing in this section imposes any duty on an employer in relation to a disabled person if the employer does not know, and could not reasonably be expected to know… (b) in any case, that that person has a disability and is likely to be affected in the way mentioned in sub-section (1)."
"18B – Reasonable adjustments: supplementary
(1) In determining whether it is reasonable for a person to have to take a particular step in order to comply with a duty to make reasonable adjustments, regard shall be had, in particular, to—
(a) the extent to which taking the step would prevent the effect in relation to which the duty is imposed;
(b) the extent to which it is practicable for him to take the step;
(c) the financial and other costs which would be incurred by him in taking the step and the extent to which taking it would disrupt any of his activities;
(d) the extent of his financial and other resources;
(e) the availability to him of financial or other assistance with respect to taking the step;
(f) the nature of his activities and the size of his undertaking;
…
(2) The following are examples of steps which a person may need to take in relation to a disabled person in order to comply with a duty to make reasonable adjustments—
(b) allocating some of the disabled person's duties to another person;
(d) altering his hours of working or training;
(e) assigning him to a different place of work or training;
(f) allowing him to be absent during working or training hours for rehabilitation, assessment or treatment;
(g) giving, or arranging for, training or mentoring (whether for the disabled person or any other person);
(l) providing supervision or other support."
"(1) Where this Act imposes a duty to make reasonable adjustments on a person, this section, sections 21 and 22 and the applicable Schedule apply; and for those purposes, a person on whom the duty is imposed is referred to as A.
(2) The duty comprises the following three requirements.
(3) The first requirement is a requirement, where a provision, criterion or practice of A's puts a disabled person at a substantial disadvantage in relation to a relevant matter in comparison with persons who are not disabled, to take such steps as it is reasonable to have to take to avoid the disadvantage."
(A) The Appeal on Liability
Grounds of appeal
"(1) The tribunal erred in identifying a provision, criteria or practice (PCP) that the Claimant return to work to perform the essential functions of her job and in holding that it had failed to make reasonable adjustments to alleviate the disadvantage caused to the Claimant by such a PCP.
(2) That in considering the duty to make reasonable adjustments, the tribunal erred in failing properly to apply the statutory provisions as explained by this tribunal in the case of Department for Work and Pensions v Alam [2010] ICR 665.
(3) The tribunal erred in holding that a failure to pay for private cognitive behavioural therapy and to engage with the Claimant during her absence amounted to failures to make reasonable adjustments in circumstances where such therapy was available to the Claimant through the NHS, but had never been taken up by her and where the Claimant had refused to engage with the Appellants despite their attempt to contact her.
(4) That the tribunal erred in holding that a failure to pay for private cognitive behavioural therapy and to engage with the Claimant during her absence amounted to repudiatory conduct on the part of the First Appellant, so as to entitle the Claimant to terminate her contract of employment without notice in circumstances where such therapy was available to the Claimant through the NHS but had never been taken up by her and where the Claimant had refused to engage with the Appellants despite their attempts to contact her.
(5) The tribunal erred in holding that the Claimant's constructive dismissal was an act of unlawful discrimination contrary to section 15 of the Equality Act 2010. No such claim was advanced by the Claimant and the Appellants therefore had no opportunity to make representations thereon. The tribunal provides no reasoning whatsoever for its conclusion and the conclusion is plainly wrong in any event."
The Parties' Submissions and Discussion
Ground 1: alleged error in identifying the relevant PCP
"it is not clear that this requirement was actually imposed rather than stated as an intention… As the [Appellants'] second letter of 4 June 2010 demonstrated, there was an intention to refer to Dr Parry 'to allow us to consider whether there are any steps we can take now to facilitate your return to work…'."
"…applying the Romec test (as modified) we do not consider that the adjustment would have removed the Claimant's disadvantage and assisted her earlier return to work at that stage. There was cogent evidence that the Claimant was unable to perform the limited duties even before she went off sick and when on full pay. The reduction in pay of itself would not have made it any more difficult or less likely. We find that the Claimant's sudden breakdown over the weekend of 30 April to 2 May 2010 would have occurred even if the Respondent had offered the desired adjustment."
"… it is necessary … to identify the PCP which placed the Claimant as a disabled person at a substantial disadvantage. We find that it was that the Claimant be able to return to work performing the essential functions of her job. This is confirmed by the Archibald case. As of May/June 2010 onwards, the Claimant was clearly unable to comply with that requirement."
Mr Sweeney criticises the tribunal's reasoning in that short reference to the decision in Archibald v Fife Council [2004] ICR 954. He submits it says nothing about the nature and extent of the disadvantage suffered by the Claimant by the application of a particular PCP. In our view the relevance of Archibald is contained in the opinion of Lord Rodger at para 42 where he states:
"What actually happens if an employee becomes so disabled that she cannot perform the essential functions of her job is that, under her contract of employment, she is liable to be dismissed. That is the substantial disadvantage she suffers."
The Claimant's disability placed her at a substantial disadvantage in comparison with a non-disabled person in the same employment who was not at risk of being dismissed on the ground that, because of disability, he was unable to do the job he was employed to do (see Lord Hope at para 12).
Ground 2: the application of Secretary of Work and Pensions v Alam
"… it seems to us clear, as a matter of statutory interpretation and giving the language of those provisions their ordinary meaning, that to ascertain whether the exemption from the obligation to make reasonable adjustments provided for by section 4A(3)(b) of the 1995 Act applies, two questions arise. They are: (1) did the employer know both that the employee was disabled and that his disability was liable to affect him in the manner set out in section 4A(1)? If the answer to that question is: 'no' then there is a second question; namely (2) ought the employer to have known both that the employee was disabled and that his disability was liable to affect him in the manner set out in section 4A(1)?"
Ground 3: reasonable adjustments
"In other words, Parliament is directing employers to make adjustments to the way the job is structured and organised so as to accommodate those who cannot fit into existing arrangements."
In further support of his submission that reasonable adjustments must be "job-related" Mr Sweeney refers to the Code of Practice in place from 1 October 2004, and which remained in place until 6 April 2011 after the coming into effect of the Equality Act 2010 which was in substance the same as the 1995 Code which applied at the time of Kenny and which is directed, as is the 2011 Code, at employers making adjustments to work-related matters. It follows, he submits, that had Parliament intended to broaden the scope of what was required by way of reasonable adjustments in 2004 beyond that considered to be the case in Kenny, then presumably it would have ensured that the new Code of Practice reflected this. Mr Sweeney submits that the substitution of section 4A for the old section 6 has no material effect for present purposes. Accordingly he submits that the employer is not obliged to pay for medical treatment to improve an employee's health to enable him to perform any work; whether an employee is fit to do any work is a matter entirely, he submits, for the employee.
"A disabled man returns to work after a six month period of absence due to a stroke. His employer pays for him to see a work mentor, and allows time off to see the mentor, to help with his loss of confidence following the onset of his disability."
What was recommended by Dr Parry was psychiatric sessions and counselling to enable the Claimant to return to work and enable her to deal with the substantial disadvantage which had arisen because she was not able to fulfil the PCP. We accept Ms Eddy's submission that the issue in this case is not the payment of private medical treatment in general, but, rather, payment for a specific form of support to enable the Claimant to return to work and cope with the difficulties she had been experiencing at work.
Ground 4: constructive dismissal
"Even if some of the reasons stated in the resignation letter have not been made out, the Respondents' failure to follow the recommendations of Dr Parry, without any explanation given to her at the time, or any consultation with the Claimant amounted to a repudiatory breach of the term of trust and confidence which clearly arose from the Claimant's disability. These were in themselves an effective cause of the Claimant's resignation."
Ground 5: Discriminatory dismissal
"… it is a fundamental principle of natural justice that a party should have the right to make submissions on any issue which is the subject of the dispute and in relation to which adverse findings may be made."
(B) The Appeal on Remedies
i) The tribunal erred in concluding that it had power to award damages for wrongful dismissal in circumstances where it had not adjudicated on the wrongful dismissal claim and had issued no judgment in respect thereof (Ground 1).
ii) The tribunal erred in concluding that an employee is not required to give notice to terminate a contract of employment in order to benefit from sections 86-88 of the Employment Rights Act 1996 ("the 1996 Act"). The Claimant resigned without notice on 23 November 2010. At that time she had exhausted all rights to contractual sick pay. The tribunal ought to have concluded that the Claimant was not entitled to any notice pay (Ground 2).
iii) The tribunal erred in paragraph 18 of the decision in concluding that the Appellants terminated the contract of employment. This error of law resulted in the tribunal awarding 12 weeks' notice pay instead of one week's pay (on the assumption that the Claimant was entitled to any notice pay) (Ground 3).
"The Respondent could not argue that any prejudice was caused to it by a failure to record a finding on a claim which had in fact been made and whose result was obvious once there had been a finding of constructive dismissal."
"86(1) The notice required to be given by an employer to terminate the contract of employment of a person who has been continuously employed for one month or more—
(c) is not less than twelve weeks' notice if his period of continuous employment is twelve years or more.
(2) The notice required to be given by an employee who has been continuously employed for one month or more to terminate his contract of employment is not less than one week.
(6) This section does not affect any right of either party to a contract of employment to treat the contract as terminable without notice by reason of the conduct of the other party.
87(1) If an employer gives notice to terminate the contract of employment of a person who has been continuously employed for one month or more, the provisions of sections 88 to 91 have effect as respects the liability of the employer for the period of notice required by section 86(1).
(2) If an employee who has been continuously employed for one month or more gives notice to terminate his contract of employment, the provisions of sections 88 to 91 have effect as respects the liability of the employer for the period of notice required by section 86(2).
(3) In sections 88 to 91 'period of notice' means—
(a) where notice is given by an employer, the period of notice required by section 86(1) and
(b) where notice is given by an employee, the period of notice required by section 86(2).
(4) This section does not apply in relation to a notice given by the employer or the employee if the notice to be given by the employer to terminate the contract must be at least one week more than the notice required by section 86(1).
91(5) If an employer fails to give the notice required by section 86, the rights conferred by sections 87 to 90 and this section shall be taken into account in assessing his liability for breach of the contract."
"If this submission were correct it would have a startling effect. To give an entirely hypothetical example divorced from the present case, were an employee, after 12 years' service to be violently assaulted by his employer at work and were he to elect to leave on the spot, he would lose the rights to notice pay. The submission is based on a misreading of the opening words in section 87(1) 'if an employer gives notice to terminate the contract of employment of a person who has been continuously employed for one month or more, the provisions of sections 88-91 have effect as respects the liability of the employer for the period of notice required by section 86(1)'. Notice does not mean advance notice, it includes immediate notice. It is to be contrasted with the term 'period of notice'… in section 87(3)."
(C) Conclusion
i) On the liability appeal, Grounds 1-4 fail; the appeal on Ground 5 is allowed;
ii) On the remedies appeal, each of the grounds of appeal fails.